Darius McDermott: Educating clients on active funds

Different goals and downside protection

clock • 4 min read

Recent headlines stemming from an S&P Dow Jones report on active fund underperformance in 2016 will understandably raise questions from clients, says Darius McDermott, as he highlights some key points you could discuss

If you subscribe to the same plethora of financial news emails that I do, chances are you have of late seen more than a few headlines in your inbox along the lines of "87% of active UK equity funds underperformed in 2016". This was a significant change on 2015, when around 78% of funds outperformed, according to the report on which all the headlines were based. The stats come from the S&P Dow Jones Indices' scorecard, which compares funds in major sectors to the markets in which they operate. Being an ardent believer and investor in active management, personally, I strongly support resea...

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